Samsung Galaxy S4 manufacturing cost

Samsung recently launched Galaxy S4 for Rs. 41500 in India. World Market Research Organisation IHS iSuppli recently unveiled manufacturing cost of SamsungGalaxy S4. SamsungGalaxy S4 which costs around $640 in U.S. Market is manufactured at the cost of $236(Rs. 13000). Samsung does not manufacture all the parts for making the phone. Various parts are sourced from various manufacturing companies across the globe. All these parts are assembled to make the complete phone. Let’s take a look at virtual costs of various parts used in SamsungGalaxy S4 manufacturing.

These are the major parts and their costs used in manufacturing of SamsungGalaxy S4. As you can see Samsung earns around $400 / Rs. 28500 profit per piece. No doubt Samsung is leading in smartphones and it’s innovative technology. But what do you think? Is it worth spending almost 3 times the manufacturing cost?

Quick specs of the Galaxy S4:

Android 4.2.2 Jelly Bean

Super AMOLED capacitive touchscreen with 16M colours.

1920 x 1080 full HD resolution on a 5 inch screen, that gives a pixel density of 441 ppi.

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9 Comments

This was an interesting post. Will be brilliant if you can do a comparison of other phones too. I suppose that won’t deter many, they know they’re being fleeced anyway. The iPhone 6, for one is ridiculously overpriced.

While the argument might make sense, it’s not exactly valid. Manufacturing costs aren’t the only cost accrued in the making and launching of a product. There’s marketing, maintenance, and tons of unprecedented cost that are involved.
One can’t claim that they are charging more until you factor in all of these costs which is quite difficult since you’ll have to be on the inside to determine these.

Absolutely Tobiman. The argument never said that this was it. But considering the manufacturing cost, I feel it’s too expensive. No doubt, there are other costs involved and we cannot come to a conclusion that they are just exploiting us by being overpriced.

Not sure how much retail stores make on the S4 but whatever it is, you have to subtract it from the “$400” that you say Samsung makes on the phone. I would guess that Samsung sell the S4 to shops for about $500. Can anyone who works in a phone shop tell us what shops pay for the S4?

If we take Nike/Addidas/Vans as an example, I would also guess that a pair of shoes that costs them $10/$12 to make will end up selling in a store at around $60. These are common mark ups for shoes and apparel.